I have for many years used # 2 since I don't like obscuring the target, either. Since taking MAG40, I've been playing around with Mas's stress fire technique for close in stuff (Tueller and less), which works out to pic #1, but with the front post raised up above the plane of the rear dots by about a dot's height. This allows complete visual of the target and hits to center rather than bottom of target (as in the magic triangle contained from the base of the neck and between the nipples). It's not an exact science for me yet, but I like it so far. Once you get the feel for it, it becomes pretty automatic. Sort of a compromise between point shooting and sight shooting.